The court cited poor occupancy at these properties as the primary reason for their closure and highlighted that public funds should not be wasted on maintaining “white elephants”. The hotels that will be closed include the Palace Hotel in Chail, Hotel Baghal in Darlaghat, Hotel Geetanjali in Dalhousie, and several other hotels in Dharamsala, Kullu, Manali, and other locations across the state.
According to the court, the occupancy rates of these hotels have been “dismal” and that HPTDC failed to generate profits from these properties. The corporation had submitted occupancy data for 56 of its hotels over the past three years in response to an earlier court order.
The court stated that the continued operation of these properties is a burden on the state’s finances. The ruling acknowledged the financial crunch faced by the state, with the court noting that relevant financial matters had been frequently brought before it.
In its order, the court highlighted its expectations from September 17, 2024, for the corporation to come up with a plan to improve its resources. However, no significant steps had been taken to address the issue.
The court’s order includes provisions for retaining a skeletal staff for the maintenance of the closed properties and the remaining employees be reassigned as needed.
Additionally, the managing director of HPTDC was directed to submit an affidavit confirming the implementation of the closure and to provide a list of retired and deceased employees so that any pending dues can be disbursed to them and their families. The court asked the corporation to report the status of dues owed to it by government and private entities at the next court hearing.
(Edited by : Jerome Anthony)